Good News and Bad for Tech Firms in Brand Loyalty Index

December 3, 20184min

The 2018 Brand Loyalty Index from Sodexo Engage has revealed that technology brands continue to dominate when it comes to customer loyalty and building those all-important relationships that promote future sales.

Promotions and giveaways, alongside product experience, have been the main drivers in how loyal consumers are. Maintaining their position from last year, Samsung and Apple take the top two spots in the Index, while Dyson and Sky TV also make it into the top 10 for the first time (5th and 10th respectively). Meanwhile, streaming service Netflix falls out of the top line-up altogether, with rival Amazon also dropping 11 places to 17.

The research also highlights that the relationships technology brands share with customers are now showing signs of maturing. Sky TV (79 percent), Apple (78 percent), and O2 (70percent) are all developing long track records with consumers. When it comes to loyalty, over half (51 percent) of Apple users and six-in-ten Dyson customers (58 percent), feel their loyalty is rewarded.

However, rising numbers of consumers report having had a poor experience with some tech brands which is a particular concern in a sector where quality counts. In last year’s Index, more than half of those surveyed said they have never had a negative experience with these brands. Today only Samsung, which tops the Index, maintains that claim.

Chris Baldwin, Director of Consumer Promotions and Loyalty at Sodexo Engage said: “The rise in negative experiences when it comes to tech products is hardly a surprise – consumers use these brands all the time. With about a third of consumers on their Apple or Sky products every day (31 percent for each), there’s much higher chance for them to encounter problems which impacts their loyalty to the product.”

Technology brands have seen the biggest drop when it comes to customer loyalty; eight-out-of-10 of the tech brands in the Index have seen declines of 10 percent or more, followed closely by Samsung and Sony who saw a decline of nine percent. More than half of customers also said they would be very likely to switch if another brand was offering a promotion, prize or freebie.

Chris Baldwin added: “With so much competition, maintaining a loyal stream of customers when it comes to a tech product is hard to achieve. These brands are often dependent on a continued cycle of quality items and services to keep their customers on board. In today’s world, loyalty is a tricky thing to hold onto, but promotions and giveaways are proven to be a major opportunity to keep consumers engaged with the product and help build a larger customer base.”